empty
19.02.2025 10:30 AM
Why Is the Cryptocurrency Market Under Pressure? (Potential Bitcoin Rise and Litecoin Decline)

If we look at the performance of major cryptocurrencies, their last notable price surge against the US dollar was observed at the conclusion of the US presidential election campaign.

Many tokens nearly doubled in price in anticipation of Donald Trump's decisive victory, reflecting expectations of a shift in the US economic policy paradigm. This excitement was further fueled by reports that Trump himself had launched a cryptocurrency project.

With the election of the 47th president and his statements on the future role of cryptocurrencies in the national economy, crypto traders became noticeably optimistic, actively accumulating tokens in the hope that other market participants would follow. However, the situation turned out to be more complex. The market has not yet signaled further price increases; instead, many traders used Trump's victory as an opportunity to lock in profits.

While some market participants are trying to hold Bitcoin and Litecoin near their recent highs, the overall picture suggests that broad-based catalysts for further growth are currently lacking. Until more favorable conditions emerge, cryptocurrencies are likely to trade within sideways ranges.

Why Is the Crypto Market Behaving This Way?

It's no secret that cryptocurrencies are now effectively traded against the US dollar, which means their performance is largely influenced by the dollar's dynamics against other currencies.

Both Bitcoin and Litecoin have recently shown a clear correlation with movements in the US dollar. While local factors—such as the conclusion of the US election and Trump's pro-crypto rhetoric—have played a role, the primary driver behind the stalling of the rally appears to be Trump's concern over the global role of the US dollar.

Trump has expressed a desire to preserve the dollar's influence, which was reportedly a topic of discussion during his recent call with Russian President Vladimir Putin. The US economy relies heavily on maintaining at least significant dominance of the dollar in global trade and finance. Therefore, it is unlikely that Trump would actively promote cryptocurrency adoption at the expense of the dollar. This represents a key fundamental constraint on further token appreciation.

Another major factor is the expectation that Trump's policies favoring import restrictions will strengthen the dollar. The recent rise in inflation data makes it unlikely that the Federal Reserve will continue cutting interest rates in the near term. A stronger dollar typically weighs on Bitcoin and other digital assets, but the uncertainty surrounding Trump's political and economic strategy has left investors hesitant. The key question remains: when will this uncertainty end? That is something no one can answer definitively.

For now, sideways movement is likely to continue in the crypto markets, with sporadic price spikes in both directions.

Market Forecast

This image is no longer relevant

This image is no longer relevant

Bitcoin

The token is trading within a narrow range, impacted by the factors discussed above. Moving between $93,970 and $98,476, Bitcoin could see some local support and push toward the upper boundary, but overall, it is likely to remain range-bound for some time.

Litecoin

Litecoin is also trading in a range, though wider at $96.85–$137.50. For now, it appears stuck within this zone. A failure to break above the upper boundary could lead to a local reversal and a decline toward the lower end of the range.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

What to Pay Attention to on June 26? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic reports are scheduled for Thursday, and the market this week has shown a clear intention to continue the upward trend that has lasted for five months. Yesterday

Paolo Greco 07:16 2025-06-26 UTC+2

GBP/USD Overview – June 26: July 9 Is Approaching

The GBP/USD currency pair remained stagnant for most of Wednesday. Let's recall an old technical signal: if the price updates a significant extreme and immediately pulls back, there

Paolo Greco 03:39 2025-06-26 UTC+2

EUR/USD Overview – June 26: Jerome Powell Said Nothing New

The EUR/USD currency pair remained completely calm throughout Wednesday. Let's recall that this week began with a storm, provoked—of course—by Donald Trump, who first announced a ceasefire between Iran

Paolo Greco 03:39 2025-06-26 UTC+2

The Euro Regains the Initiative

The euro is attempting to resume its upward movement, although not many economic reasons support this scenario. Inflation in May rose in line with the ECB's expectations, which only strengthened

Kuvat Raharjo 00:43 2025-06-26 UTC+2

The Dollar Walks a Razor's Edge

Markets were prepared for a ceasefire in the Middle East. But are they ready for the return of trade wars? Investors have come to believe in maintaining a universal import

Marek Petkovich 00:42 2025-06-26 UTC+2

Yen Is Back in the Game

The yen failed the test as a safe-haven currency. The Israel–Iran conflict triggered a correction in USD/JPY toward a downtrend. For most of the year, investors had the impression that

Marek Petkovich 00:41 2025-06-26 UTC+2

EUR/USD. Pushing the Limits: Buyers Target the 1.1630 Resistance Level

For the second day in a row, the EUR/USD pair is testing the 1.16 level, pressing against the 1.1630 resistance level (the upper line of the Bollinger Bands indicator

Irina Manzenko 19:03 2025-06-25 UTC+2

USD/JPY: Japanese Yen Weakens Amid Declining Demand for Safe-Haven Assets

At the moment, the yen remains overshadowed by the U.S. dollar.From the perspective of the Bank of Japan's domestic policy, the summary of the June meeting reveals that some policymakers

Irina Yanina 18:46 2025-06-25 UTC+2

Iran–Israel Ceasefire: What's Next for the Markets? (A corrective decline in EUR/USD and GBP/USD is possible)

Geopolitical tensions in the Middle East continue to play a significant role in influencing financial markets. A key point of concern is the stability of the ceasefire between Tehran

Pati Gani 09:43 2025-06-25 UTC+2

The Market Has Overcome the Barrier

Neither the story of China's DeepSeek, the White House tariffs, nor the Israel-Iran conflict could halt the victorious advance of U.S. stock indices. The Nasdaq 100 has already updated

Marek Petkovich 08:44 2025-06-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.